Is Safeco a reputable insurance company for short-term rentals

[Leon Lee]

Hello fellow STR investors!

I own a quad that is currently being used for short-term rentals. However, the insurance policy I have with Farmers is quite expensive. Recently, I received a quote from Safeco that is only half of what I am currently paying (with similar terms). The broker mentioned that as long as the policy included the term ‘seasonal’, it would cover vacation and short-term rentals.  I am a little hesitant to switch to Safeco because of their parent company’s reputation. According to the Better Business Bureau (BBB), Liberty Mutual Group, Safeco’s parent company, has a low rating. 

Have any of you used Safeco for your insurance needs? If so, could you share your experience? 

Thanks in advance!

Lee

[Michael Baum]

Hey @Leon Lee, Safeco is an A rated company by AM Best. The BBB is simply a place where anyone can complain about any company.

What you want to look at is AM Best as they rate all insurers.

Now, you need to drill down on what Seasonal means. Does that mean you are covered 365 if you never use the property? Only when others are using the property?

Safeco is a fine insurance company but I would look at others first. Foremost and Proper both offer up actual STR policies.

Proper will be expensive but it is extremely comprehensive.

Many insurers offer up polices but some are more band aids where they paste on various riders to cover you.

For me, insurance isn't where I want to skimp out. One experience can bankrupt you if you aren't properly covered.